Taxpayer Registration

Pursuant to Section 43 of the BPT Act, “business” includes any profession or vocation and all activities carried on with a view of making profits, excluding employment. Examples: Coffee Shop, Computer Sales & Repairs, Retail Clothing Shop, Consulting Firm, Selling Goods & Services Online.

All persons conducting business in the Maldives are required to register with MIRA, except for individuals meeting all of the requirements below:

a) None of the business activities carried on by the individual require a permit or license issued by a Government Authority or State Institution; and

b) The individual does not give any consideration to any person for work performed by that person for that individual; and

c) The average monthly gross revenue earned by the individual from all business activities carried on by that individual during any 12-month period does not exceed MVR 40,000.

Companies, partnerships and sole proprietorships must register within 60 days of registering with the Economic Ministry. Other individuals and bodies must register within 60 days of receiving a business permit or, if a permit is not required, within 60 days of the commencement of the business. Failure to register within the prescribed time will result in a fine accruing at the rate of MVR 50 per day up to a maximum of MVR 5,000.

To register with MIRA, MIRA 101 (Taxpayer Registration) form along with documents listed therein must be submitted.

If the goods sold via online portal or website includes imported goods, required permits must be obtained from relevant authorities.

Business Profit tax (BPT)

Business Profit Tax (BPT) is a tax charged on the taxable profits that exceed MVR 500,000 in a tax year. Companies, partnerships, individuals and all other persons who are carrying out business in the Maldives are subject to BPT.

The rate of Business Profit Tax for all the persons, except for companies earning income solely from sources outside Maldives, is 15% of taxable profit that exceed the threshold of MVR 500,000 per year. Taxable profit refers to the profit after deductions are made from the gross income, in accordance with the BPT Act and its Regulation.

For penalties relating to BPT, please refer to our guide on penalties .

For the purpose of BPT all business related records including any records of online transactions must be maintained for a period of 5 years.

Withholding Tax (WHT)

Withholding Tax (WHT) is a tax that is deducted from payments made to non-residents for particular services and the use of certain assets, specified under Section 6 of the BPT Act. 10% of the gross payment made to the non-resident must be deducted as WHT. For further information on WHT, please refer to our WHT Guide.

For penalties relating to WHT, please refer to our guide on penalties .

Goods and Services Tax (GST)

Goods and Services Tax (GST) is a tax charged under the GST Act on the value of goods and services supplied in the Maldives by a GST registered person.

GST registration is compulsory for persons who meet one of the conditions listed below.

a) If the value of your taxable supplies during the past 12 months exceeded 1 million Rufiyaa.

b) If the value of your taxable supplies for the following 12 months is expected to exceed 1 million Rufiyaa.

c) Persons who hold an import license

d) Persons providing Tourism Good or Service given under section 15 of the GST Act.

To register for GST, MIRA 105 (GST Registration) form along with documents listed therein must be submitted. All persons liable to register for GST must register within 30 days. If not penalty applies at the rate of MVR 50 per day up to a maximum of MVR 5,000.

Persons registered for GST in the General Sector must charge GST at the rate of 6%, while persons registered for GST in the Tourism Sector must charge GST at the rate of 12%.

Once taxpayers are registered for GST they need to charge GST on their taxable sales from the date specified on the GST registration certificate issued upon GST registration, and file their GST returns and make GST payments as and when they fall due.

GST registration certificate must be displayed on the business premise. If you are registered for GST and conducts your business online, a PDF version or an image of this certificate must displayed on your website or trade portal.

GST registered taxpayers must be able to issue invoices/receipts to their customers, in particular “tax invoices” in accordance with Section 42 of GST Act to other GST registered parties when requested.

GST registered taxpayers are required to maintain all business related records, including but not limited to sales made at the standard rate, sales of zero-rated supply, sales of exempt supply, tax invoices, and credit and debit notes.

For penalties relating to GST, please refer to our guide on penalties .